So not only are European depositors still impairable, because sadly Dijsselbloem was dead serious in his Reuters interview, but the new Eurogroup head pulled a Juncker and confirmed "it is serious" in the process losing all credibility too.

To summarize Diesel-BOOM: "If the market is red, you have to lie."

Forget Risk-On-Risk-Off, it's Template-On-Template-Off now...

His subsequent official clarifying remarks on the Eurogroup's website:

Statement by the Eurogroup President on Cyprus

25/03/2013 - Statement

Cyprus is a specific case with exceptional challenges which required the bail-in measures we have agreed upon yesterday.

Macro-economic adjustment programmes are tailor-made to the situation of the country concerned and no models or templates are used.

He said what he said, but he was wrong to begin with. Most of the large Euro economies would have simply bailed out the banks without a second thought, and throttled their parliaments to vote for it until they complied. The only problem with Cyprus is that the banking sector was 7x the size of their entire economy so even if they sold every last Cypriot into perpetual slavery they still would be insolvent. Thus this was the solution they came up with.

IRELAND is the blueprint. Fuck the taxpayers, and make them pay for the bankers. That will always be the blueprint as long as there are enough taxpayers to get it done.

Seems that their actions and statements aren't coordinated enough. They need a bigger bureaucracy to channel every bit of information from Amsterdam to Nicosia. That information ministry shall be conveniently located in Berlin's former offices of the Ministry of Truth.

Orwell was on to something but even he couldn't imagine how bloody painful and inhumane the suffering for the world would be to live in a constant state of propaganda and lies.

These Euro-Crookes have a really deep bench of rookie spokesmen. Bringing out Dis'll BlowEm, and then immediately benching him, tells me we're entering the hail-mary period late in the 4th financial quarter.

I'll take odds that the ECB and the wise council of EU elders (/s) increases deposit insurance on € denominated deposits within a week to two at most.

Italy & Spain will break regardless (they're already broken; it's just that the true depth and intractability of their economic and financial depression will become highly visible to even the commoners despite all the Pollyanna-speak by the EU bureaucrats).

The extent of the sepsis that is present in the French economy and intra-nation banking system will also soon become apparent despite bureaucratic Pollyanna-grams, as well.

Look for massive pressure to be exerted on € denominated money markets, as the next phase of the EU's crisis.

CHIHUAHUA CITY, Mexico — Treasury Secretary Gusavo Petricioli Iturbide denied reports that the government is planning another big devaluation of the peso currency soon, claiming that such a measure would spur inflation even more. 1988

I have no doubt that some of the Southern European socialist-types are starting to eyeball this situation and think "why didn't I think of this" -- of course before they even think about proposing it in their own country they'll make sure their own deposits, and those of their most important political donors, are far out of reach.

sounds right. what an amazing amount of control they just displayed...market spiraling off...so they make this dumbass retract his very real statement and the market sheds it's losses. fascinating how rigged this whole thing is...

You're 100% right. The markets can never go down ever again. The headlines out of Europe and the fact that the Fed is doing $85 billion per month of QE forever proves this point. I feel like I'm living in the twilight zone.

Having Ms Kunis, one of the cast members of the new Wizard of Oz movie advising people to go bullish on stocks is the kind of satire you can't make up anymore. ''Pay no attention to that man behind the curtain'' indeed.

No offense taken. I'm not saying that the markets can never go down. I think the markets are going to crash. I should've said that it seems like policy makers believe that markets should never be allowed to go down ever again. I thought we were at a top in this market, and we probably are, but it seems like TPTB are hell bent on never letting a negative outcome happen due to the fact that rising equity markets, in their eyes, are a real time indicator of their policies working. When everyone buys into that mentality that's when the market is at the greatest risk of a crash.

Every day, new highs - just seems no end to this melt up. Uncle Ben says the market isn't overvalued and he has the pedal to the metal. It isn't going to end well, but I don't think the end is coming until he leaves office.

" Dijsselbloem is considered a lightweight, even here in the Netherlands."

And you speak on what authority for us Dutchmen exactly?

Btw, since you are dutch as well you should have seen this coming. Dijsselbloem was very clear with the SNS debacle that he intended to do this very thing sooner than later, and I agree with him. Too bad all bondholders (and the ECB) cried so loudly he had to go back on that one, not this time though, and hopefully not in the future.

Time for TBTF to end, and even more than time to leave the taxpayers (of who most of us never even had anything to do with any of the banks involved) alone for a change.

So it would reason that money would flow to where TBTF still exists. Japan and the USA. Unless people are starting to catch on to the whole ponzi. Of course it could also be said that once the bad debt is wiped out there won't be any money left to move. Not sure how i am able to sleep at night.

Yes, and for all I care you´re welcome to have it. I do hope Ben Bernanke grows a bionic hand in that case because having all ten fingers firmly lodged on the CTRL-P button won´t suffice, although he must be having a raging boner from all of this stuff he could probably use.

p.s. I personally believe money from honest savers will flow to small local banks they know and trust to treat it well.

watching the web broadcast of the panel that included Dijsselbloem, my impression was that he is a good man. smart, well intentioned and trust worthy. under strain, for sure. as an honest man would be.

because it works... nothing makes money like money, or something like that.

though, i think a near-top indicator was the reporter asking the bernanke if it was too late to get in on the action. by the time lowly pudknocker reporters and those of the Yahoo News (or Bloomberg for that matter) ilk "get" that the rally has been QE filled, you're near the top.

At a minimum given what we have seen since the 'Financial Crisis' began, how can anyone still read a finance textbook and think, well sure that Fama guy makes sense the markets are informationally 'efficient' and investors are purely economically rational? The truly rational response to what has just transpired in Cyprus is to withdraw every cent, place it under you mattress, and curl up into the fetal position while sucking your thumb & humming your favorite show tune.

History will prove these idiots wrong, given a bit of time. Right now the market is totally goverened by algo based trading and is detached from reality. The funds are perfectly happy to let their decisions be made by computer programs rather than use some common sense and logic. Uncle Ben has assured them there is very little risk in the markets - so why would you ever sell? All selloff attempts for the last 4 months have been immediately turned around either the same day or the next day no matter what the news is.

Any and all events that would normally signal caution are viewed as massively bullish. Individually they would not signal panic time either but when you add them all up and ignore any and all risk metrics eventually it will lead to massive panic selling. Just waiting on the trigger event.

85 billion, per month, every month, indefinitely. This has finally caught up with the markets "pricing" and now provides the support. Don't think, just BTFD! Take profits, buy physical assets of real value. Repeat.

Devaluation of purchasing power, while inflating the market nominally.

If your assets are not being inflated, you're being deflated. Pity the folks without the large equity investments. While this tide may raise some boats, its the ones in the yachts that are benefiting most.

I think I have it: "We won't take your money, at least most of your money, but you can't have your money. If you want some of your money, just give us a little while so we can confiscate some one else's money, but since they already withdrew their money, we'll have to confiscate more of your money."

Market is totally detached from risk metrics due to over computerization of trading. Once the algo's make a turn higher off of an intraday selloff it almost never sells again. You can average into the push all you want short but they never really let go again. Anyone attempting that will just average to a larger loss. That in and of itself is not normal behavior, especially after such a big push higher.

Rather than 2-3 day corrections we get 2-3 hour corrections which undo themselves the same day or the next AM on the big gap and run higher - again very, very abnormal behavior for the markets but that is just what they are doing right now.

Question for those familiar with German voting process... has the uncertainty been resolved in the voting laws since the high court decision last summer? I have been wondering ever since I read the following if Merkel would be able to retain power regardless of the voting constituency.

Germany's Constitutional Court on Wednesday ruled that the laws governing elections in the country are unconstitutional. The verdict leaves Germany without valid voting laws just over a year before the next scheduled general elections. Commentators say Chancellor Merkel's coalition is at fault.

With just over one year to go before Germans are scheduled to go to the polls in a general election, the ruling puts the pressure on Chancellor Angela Merkel to find a solution. It also means that Merkel's government, despite signs that her party is no longer willing to blindly follow her lead when it comes to efforts to save the euro, is not likely to fall prior to those elections in 2013. Without a valid voting law, the German president would surely refuse to dissolve the government no matter how many conservative rebels there are.

Anybody here seen the original British 'The Thick of It'? The Diesel Bloom thing sounds just like a typical Malcolm Tucker spin.... "You might have heard him say thats Cyprus is a blue print, but that's not what he really said, do you understand? No such thing ever said, you got that or I will take out your kindeys and use them as piniatas at my next party."

Maybe I'm too simplistic, but if a bank which holds my money makes mal-investments and loses my money, I should lose my money, and not expect other people to have to cover for me. Seems like that would restore fiduciary responsibility to the banks pronto.

Maybe i dont understand what you dont understand..however, if you give your friend, lets say me, your PMs, if you had any, to hold, I lose them in ANOTHER boating accident, I shouldnt be responsible to give you back your PMs? Friend! Im here

You didn't invest with them, you lent to them. They are obliged to give you back your money even if they made a bad investment. On the other hand, they don't have to give you any of the profits if they make a good investment. See how that works?

Bank examiners are supposed to inspect the books every 3 months and shut down a bank that is insolvent, even by 1 Euro. Never, ever is a bank supposed to be able to get this far under water.

Wonder what the bank examiners have been doing for the last few years?

Ah yes, you are correct, it's called 'regulatory forbearance". Of course, it was supposed to be used in extraordinary cases not as standard operating procedure (and not followed by ignoring market reality). In short, there will always be an excuse for not following their own rules. Iceland is looking better and better to me all the time.